A new Lagrangian formulation of the Euler equation is adopted for the calculation of 2-D supersonic steady flow. The Lagrangian formulation represents the inherent parallelism of the flow field better than the common Eulerian formulation and offers a competitive alternative on parallel computers. The implementation of the Lagrangian formulation on the Thinking Machines Corporation CM-2 Computer is described. The program uses a finite volume, first-order Godunov scheme and exhibits high accuracy in dealing with multidimensional discontinuities (slip-line and shock). By using this formulation, a better than six times speed-up was achieved on a 8192-processor CM-2 over a single processor of a CRAY-2.